Americas Silver Corporation Acquires Option on the San Felipe
Property in Sonora, Mexico

March 02, 2017 04:50 PM Eastern Daylight Time

TORONTO--(EON: Enhanced Online News)--Americas Silver Corporation (TSX: USA) (NYSE MKT: USAS) (“Americas
Silver” or the “Company”) is pleased to announce that it has entered
into an agreement with Impulsora Minera Santacruz S.A. de C.V.
(“Impulsora”), a wholly-owned subsidiary of Santacruz Silver Mining Ltd.
(“Santacruz”), (the “Option Acquisition Agreement”) to acquire an option
agreement (the “San Felipe Option Agreement”) between Impulsora and
Minera Hochschild Mexico S.A. de C.V. (“Hochschild”). By acquiring the
San Felipe Option Agreement, the Company will have the right to acquire
a 100% interest in the San Felipe property located in Sonora, Mexico
(the “Property”) for total consideration of $15 million in cash, payable
in two staged payments. All amounts are in U.S. dollars unless otherwise
indicated.

Darren Blasutti, President and Chief Executive Officer of Americas
Silver, stated, “As we did when we acquired Scorpio Mining and the San
Rafael project two years ago, we are taking a disciplined and highly
accretive approach to our external growth strategy. The San Felipe
acquisition provides our shareholders with an exciting development asset
at an attractive valuation, which has the potential to add material high
margin production scale that further enhances the tremendous value
proposition of Americas Silver. While we remain highly focused on
successfully executing the development of San Rafael on time and on
budget, we are extremely excited to add this project to our pipeline. We
believe it has the potential to drive the next leg of growth for our
Company as we transition to a leading first quartile silver producer in
2018 and beyond.”

Overview of the San Felipe Project

The San Felipe silver-zinc-lead project is located 130 km northeast of
Hermosillo City, Sonora State in Mexico. A preliminary economic
assessment (the “PEA”) was completed on the Property in 2014 and amended
in June 2016, which envisioned an open pit and underground operation
producing low cost silver, zinc and lead production. The PEA offered
attractive returns despite being modelled at significantly lower zinc
and lead prices than current spot.

Following the successful approach used by Americas Silver when it
acquired San Rafael, the Company will be conducting a detailed
evaluation program over the remainder of the year to re-assess the San
Felipe property and advance the project towards a pre-feasibility study.
The Company’s near-term evaluation program will be primarily focused on:
(i) reviewing and improving the resource modelling; (ii) conducting
geotechnical drilling and studies; and (iii) advancing the permitting
process.

As outlined in the San Felipe Option Agreement, as amended on February
28, 2017, Impulsora was entitled to acquire 100% of the Property upon
making the following cash payments, including applicable value added
taxes (“VAT”):

(i) $2,000,000 on or before March 3, 2017 (the “Initial Payment”)(ii)
$8,000,000 on or before December 15, 2017 (the “Final Payment”)

Pursuant to the Option Acquisition Agreement, Impulsora has assigned all
of its rights, obligations and interest in the San Felipe Option
Agreement and other agreements relating to the Property to Americas
Silver in exchange for total cash payments of $7,000,000, plus
applicable VAT, as follows:

Upon completion of the Final Payment to Hochschild of $8,000,000 plus
applicable VAT on December 15, 2017, 100% of the Property will have been
acquired by the Company, free of any underlying net smelter return
royalties.

Americas Silver has funded the initial $7,000,000 cash payment with cash
on hand. As at December 31, 2016, the Company had a cash balance of
US$24.1 million and on January 30, 2017, the Company further
strengthened its balance sheet by entering into a US$15 million
concentrate pre-payment facility with Glencore PLC. With the operating
cash flows expected to be generated at current spot prices, the Company
anticipates having sufficient capital to complete construction at San
Rafael and continue its growth strategy without dilution to
shareholders. The Company will update the market on the progress of the
San Rafael project at the end of the first quarter.

Americas Silver is a silver mining company focused on growth in precious
metals from its existing asset base and execution of targeted accretive
acquisitions. It owns and operates the Cosalá Operations in Sinaloa,
Mexico and the Galena Complex in Idaho, USA.

Daren Dell, Chief Operating Officer and a Qualified Person under
Canadian Securities Administrators guidelines, has approved the
applicable contents of this news release. For further information please
see SEDAR or americassilvercorp.com.

Cautionary Statement on Forward-Looking Information:

This news release contains “forward-looking information” within the
meaning of applicable securities laws. Forward-looking information
includes, but is not limited to, the Company’s expectations intentions,
plans, assumptions and beliefs with respect to, among other things, the
realization of operational and development plans (including the San
Rafael Project, the Cosalá Operations, the Galena Complex and the
Property) as well as the Company’s financing efforts. Often, but not
always, forward-looking information can be identified by forward-looking
words such as “anticipate”, “believe”, “expect”, “goal”, “plan”,
“intend”, “estimate”, “may”, “assume” and “will” or similar words
suggesting future outcomes, or other expectations, beliefs, plans,
objectives, assumptions, intentions, or statements about future events
or performance. Forward-looking information is based on the opinions and
estimates of the Company as of the date such information is provided and
is subject to known and unknown risks, uncertainties, and other factors
that may cause the actual results, level of activity, performance, or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information. This includes
the ability to develop and operate the Property and the Cosalá
Operations (including the San Rafael Project) and Galena properties,
risks associated with the mining industry such as economic factors
(including future commodity prices, currency fluctuations and energy
prices), ground conditions and factors other factors limiting mine
access, failure of plant, equipment, processes and transportation
services to operate as anticipated, environmental risks, government
regulation, actual results of current exploration and production
activities, possible variations in ore grade or recovery rates,
permitting timelines, capital expenditures, reclamation activities,
social and political developments and other risks of the mining
industry. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated, or intended.
Readers are cautioned not to place undue reliance on such information.
By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties, both general and specific
that contribute to the possibility that the predictions, forecasts, and
projections of various future events will not occur. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.

Cautionary Note to U.S. Investors:

The terms "mineral resource", "measured mineral resource", "indicated
mineral resource", "inferred mineral resource" used in the press release
are Canadian mining terms used in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects under the
guidelines set out in the Canadian Institute of Mining, Metallurgy and
Petroleum Standards. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.

While the terms "mineral resource", "measured mineral resource,"
"indicated mineral resource", and "inferred mineral resource" are
recognized and required by Canadian regulations, they are not defined
terms under standards in the United States and normally are not
permitted to be used in reports and registration statements filed with
the Securities & Exchange Commission (“SEC”). As such, information
contained in the Company's disclosure concerning descriptions of
mineralization and resources under Canadian standards may not be
comparable to similar information made public by U.S companies in SEC
filings. With respect to "inferred mineral resource" there is a great
amount of uncertainty as to their existence and a great uncertainty as
to their economic and legal feasibility. It cannot be assumed that all
or any part of an "inferred mineral resource" will ever be upgraded to a
higher category. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted into
reserves.

1 Acquisition value per silver equivalent ounce calculated
based on the $15M total acquisition price divided in each case by the
respective resource ounces: indicated resource ounces (99 cents/ounce);
inferred resource ounces (46 cents/ounce); and (31 cents/ounce) for both
indicated and inferred resource ounces.2 Mineral
resources which are not mineral reserves do not have demonstrated
economic viability.3 Silver equivalent is calculated
using prices of US$20.06/oz, US$0.96/lb. and US$0.92/lb. for silver,
lead and zinc respectively.